Blog Post

ZF to invest $71M in Mich. tech center

LANSING, Mich. — German auto supplier ZF Friedrichshafen AG plans to spend more than $71 million and add 571 jobs by expanding its technical center in suburban Detroit.

The Michigan Strategic Fund, an arm of the state’s economic development organization, on Tuesday approved a $4 million performance grant for ZF subsidiary ZF North America Inc.

The company intends to expand its Northville site by nearly 210,000 square feet to boost r&d on new transmission, steering, axle and chassis components, the state said. The project also would allow the supplier to develop new systems for cars, commercial vehicles and off-road machines.

The grant is intended to help offset higher operating costs for ZF in Michigan, the state agency said. The supplier owns land next to a transmission plant in South Carolina and would need to buy land here. The 571 planned jobs would add to ZF’s Michigan workforce of 1,231.

ZF has more than 7,300 employees in North America.

In May, the supplier closed on its $12.4 billion purchase of supplier TRW Automotive Holdings Corp. TRW produces various automotive safetyClass X capacitors are used in “across-the-line” applications where their failure would not lead to electric shock. Class X safety caps are used between the “live” wires carrying the incoming AC current. In this position, a capacitor failure should not cause any electrical shock hazards, rather, a capacitor failure “between-the-lines” would usually cause a fuse or circuit breaker to open. systems and components, and is becoming a unit of ZF.